Telco grows in the IoT business

The business related to the Internet of Things shows high growth rates, driven mainly by the world of the smart car and the smart home. Telecommunications companies have sensed the opportunity and are seeking to position themselves as market players. 

Investments in growth

According to official data, in the five-year period between 2011-2015, investments in the IoT sector (including acquisitions) reached 31 billion dollars. In 2015, 19 acquisitions were made compared to only 4 in 2011. Those to move within the market were mainly hi-tech and telecommunications companiesbut both using different strategies. In fact, while the technological world chose to focus on substantial investments already in progress, Telco decided to set its sights on innovative start-ups, to be enhanced and developed in the medium to long term.

An IoT-proof network

The TLCs seem to have sensed the opportunity and are vying to take advantage of it. In contrast, the proliferation of connected devices in circulation brings with it the need for a network capable of supporting the weight of massive data traffic. This opens up large areas of innovation, in two directions in particular: one which is a convergence between fixed and mobile networks and the other which is the development of wireless proximity connections. Furthermore, according to the experts, the boom of the IoT will not entail the definitive disappearance of voice services, but will instead lend them a new lease of life.

The problems to be solved

The boom of the IoT will not only bring with it safe gains but also problems to be solved in order for it to really get off the ground. At the top of the list of issues to be solved is the establishment of an international regulatory framework which clearly and unitarily addresses the issues of safety and privacy, closely connected to the Internet of Things. On the subject, there is indeed a need to draw up legislation which goes beyond the differences of the individual national legal systems and puts the operators in a position to operate easily at a transnational level.